1. A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses a. b. $140,000 40,000 20,000 4,000 C. d. $ 34,000 2,000 36,000 If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, a. the amount of inventory on hand at the end of the month is a. under absorption costing b. the amount of inventory on hand under variable costing c. will operating income reported under variable costing be more or less than under absorption costing? d. the amount of operating income under absorption costing would be? $204,000

1. A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses a. b. $140,000 40,000 20,000 4,000 C. d. $ 34,000 2,000 36,000 If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, a. the amount of inventory on hand at the end of the month is a. under absorption costing b. the amount of inventory on hand under variable costing c. will operating income reported under variable costing be more or less than under absorption costing? d. the amount of operating income under absorption costing would be? $204,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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